Note: For graphing pruposes, round the inflation rate under each outcome to the nearest whole percent. For example, round 1.9% to 2.0%. Hint: Hover your cursor over each point after you plot it to make sure you have placed it on the exact coordinate you intended. 7 Outcome A 6 4 Outcome B + INFLATION RATE (Percent) 3 Phillips Curve 2 0 1 2 3 5 6 7 8 UNEMPLOYMENT RATE (Percent) shift of movement along Suppose that the g ering enacting an expansionary policy in 2023 that would shift aggregate demand in 2024 from ADA to ADB. This would cause a the short-run Phillips curve, resulting in in the inflation rate and in the unemployment rate.V Outcome A 6 A Outcome B INFLATION RATE (Percent) + Phillips Curve 2 O 1 2 3 4 5 6 7 8 UNEMPLOYMENT RATE (Percent) an increase a decrease Suppose that the government is considering enacting an expansionary policy in 2023 that would shift aggregate demand in 20 TO ADB. This would cause a the short-run Phillips curve, resulting in in the inflation rate and in the unemployment rate.Note: For graphing pruposes, round the inflation rate under each outcome to the nearest whole percent. For example, round 1.9% to 2.0%. Hint: Hover your cursor over each point after you plot it to make sure you have placed it on the exact coordinate you intended. 8 7 Outcome A 6 A 5 Outcome B INFLATION RATE (Percent) + 3 Phillips Curve 2 0 2 3 4 5 6 7 UNEMPLOYMENT RATE (Percent) a decrease an increase Suppose that the government is considering enacting an expansionary policy in 202 hift aggregate demand in 2024 from ADA to ADB. This would cause a the short-run Phillips curve, resulting in in the inflation rate and in the unemployment rate.6. Aggregate demand, aggregate supply, and the Phillips curve In the year 2023, aggregate demand and aggregate supply in the fictional country of Drooble are represented by the curves AD2023 and AS on the following graph. The price level is 102. The graph also shows two possible outcomes for 2024. The rst potential aggregate demand curve is given by the ADA curve, resulting in the outcome illustrated by point A. The second potential aggregate demand curve is given by the ADB curve, resulting in the outcome illustrated by point B. CD 108 107 108 105 104 PRICE LEVEL 103 102 101 100 0 2 4 6 B OUTPUT (Trillions of dollars) Suppose the unemployment rate is 5% under one of these two outcomes and 2% under the other. Based on the previous graph, you would expect v to be associated with the higher unemployment rate (5%). If aggregate demand is high in 2024, and the economy is at outcome B, the inflation rate between 2023 and 2024 is v . Based on your answers to the previous questions, on the following graph use the purple point (diamond symbol) to p ination rate if the economy is at point A. Next, use the green point ( triangle symbol) to plot the unemployment rate is at point B. (As you place these points, dashed drop lines will automatically extend to both axes.) Finally, use the b ross symbol) to draw the short-run Phillips curve for this economy in 2024. Note: For graphing pruposes, round the ination rate under each outcome to the nearest whole percent. For examp|-, . u u 3% to 2.0%. Hint: Hover your cursor over each point after you plot it to make sure you have placed it on the exact coordinate you intended. 9 7 __ Outcome A 6 _ a A is h': 5 - :2. Outcome B E E 4 _{I". E E 3 __ Phillips Curve L E 2 __ E EC0202 Proje....docx A Course_Project....docx A Exploration_Do....docx A 5? 6_4_Project_Par....pdf A Suppose the unemployment rate is 5% under one of these two outcomes and 2% under the other. Based on the previous graph, you would expect v to be associated with the higher unemployment rate (5%). outcome B emand is high in 2024, and the economy is at outcome B, the inflation rate between 2023 and 2024 is V . outcome A Based on your answers to the previous questions, on the following graph use the purple point (diamond symbol) to plot the unemployment rate and ination rate if the economy is at point A. Next, use the green point ( triangle symbol) to plot the unemployment rate and inflation rate if the economy is at point B. (As you place these points, clashed drop lines will automatically extend to both axes.) Finally, use the black line ( cross symbol) to draw the short-run Phillips curve for this economy in 2024. Note: For graphing pruposes, round the ination rate under each outcome to the nearest whole percent. For example, round 1.9% to 2.0%. Hint: Hover your cursor over each point after you plot it to make sure you have placed it on the exact coordinate you intended. 9 7 Outcome A 6 o A 2'; 9; utoome B E E 4 I::l z E 3 Phillips Curve LL Z